A Family Approach To The Law

Get an affordable repayment plan with Chapter 13 bankruptcy

On behalf of of Lynch Law Offices, P.C. posted in Chapter 13 on Thursday, December 20, 2018.

Many Illinois residents have debt and don't know how to overcome it. There are a number of debt relief options out there. It is just a matter of choosing what works best for one's situation. For some, budgeting and working with creditors will do the trick. For others, a Chapter 13 bankruptcy filing may be a better fit.

Before going so far as filing for bankruptcy, there are things that one can do to try to help their debt situation. It all starts by really understanding how bad one's financial state is. So, take stock of the situation by writing down all debts in one place. This can help bring it all into focus. Then determine which accounts need to be paid off first.

Next, it is possible to call creditors and ask for some debt assistance. Some may be willing to reduce interest rates. Some may be willing to lower payments. Of course, some may be unwilling to help at all. It is impossible to know until one asks what creditors can do to help the situation.

Finally, set a plan and stick to it. A debt management plan only works when it is followed. Now, if budgeting is not enough to turn one's financial situation around, Chapter 13 bankruptcy, if approved, can grant a person a repayment plan that fits within his or her budget. When going this route, it is still necessary to stick to the plan and make payments on time. If one fails to do that, bankruptcy protections may be terminated.

Illinois residents who are interested in learning more about Chapter 13 bankruptcy and other available debt relief options can seek counsel on the matter. An experienced bankruptcy attorney will have the ability to review their finances in detail and offer real solutions. Bankruptcy is not the solution in every situation, but it can offer a powerful remedy to ongoing financial issues that have become unmanageable.

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